Explore BrainMass

Calculating Profit from Selling Capacity

The Chester company will sell 100 units (x1000) of capacity from their Cake product line. Each unit of capacity is worth $6 plus $4 per automation rating. The Chester company will sell the capacity for 35% off. How much do they receive when the capacity is sold?

See attached file for additional information.

© BrainMass Inc. brainmass.com August 18, 2018, 1:45 pm ad1c9bdddf


Solution Preview

Automation rating = 7
The value of capacity =($6+7*$4)*100*1000*(1-35%) = $ 2,210,000.00

Answer: ...

Solution Summary

This solution shows how much a company would receive when capacity is sold.